Dowlais Group PLC (DWL) AI Stock Analysis

• Market Cap: £1.09B
• Dividend Yield: 5.02%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -8.09%
• EPS Growth: 82.87%
• Country: UK
• Employees: 23,327
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.06
• Shares Outstanding: 1,316,658,700
• 10 Day Avg. Volume: 2,537,505
• 30 Day Avg. Volume: 2,456,579
• PEG Ratio: 0.08
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -12.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £74.80
• Price Target Upside: -10.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: 78.00p ▼(-6.70% Downside)

Dowlais Group PLC's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative cash flow. Technical analysis indicates a lack of strong momentum, and valuation concerns arise from a negative P/E ratio despite a high dividend yield. These factors collectively suggest caution for potential investors.

Positive Factors

Strategic Merger

The merger is expected to enhance Dowlais Group's global scale and technology capabilities, potentially leading to long-term value creation and improved market position.

Shareholder Support

Robust shareholder backing indicates confidence in the company's strategic direction and potential for future growth, which can foster stability and support long-term initiatives.

Innovation and Quality Focus

A commitment to innovation and quality in engineering solutions supports sustained demand across sectors, bolstering revenue streams and competitive advantage over time.

Negative Factors

Declining Revenues

Continued revenue decline reflects challenges in market demand or competitive positioning, which can impact long-term financial health and necessitate strategic adjustments.

Negative Cash Flow

Negative cash flow indicates cash outflows exceeding inflows, which can strain operations and limit the company's ability to invest in growth opportunities or manage debt effectively.

High Leverage

Elevated leverage levels can increase financial risk and reduce flexibility, potentially impacting the company's ability to navigate economic downturns or invest in strategic initiatives.

Dowlais Group PLC Business Overview & Revenue Model

Company Description

Dowlais Group Plc manufactures and sells automotive parts in the Americas, Europe, and Asia. The company engages in developing, manufacturing, and supplying automotive drive systems for conventional and electric vehicles. It manufactures sideshafts, propshafts, and constant velocity joints for passenger vehicles; and AWD systems and eDrive systems, as well as provides component solutions to systems, including control software. The company is also involved in the production of metal powders and powder metal parts for the automotive and industrial sectors, as well as the provision of hydrogen storage solutions. The company was formerly known as Dowlais Group Headquarters Plc and changed its name to Dowlais Group Plc in February 2023. Dowlais Group Plc was incorporated in 2023 and is based in London, the United Kingdom.

How the Company Makes Money

Dowlais Group PLC generates revenue through multiple streams primarily focused on the automotive sector. The main source of revenue comes from the sale of its powertrain components and systems to original equipment manufacturers (OEMs) and automotive suppliers. The company has established significant partnerships with leading automotive manufacturers, which help secure long-term contracts and ongoing projects. Additionally, Dowlais may also earn revenue from engineering services, consulting, and aftermarket support for its products. As the automotive industry increasingly shifts towards electrification, Dowlais capitalizes on this trend by investing in research and development to create cutting-edge technologies that meet the evolving demands of the market.

Dowlais Group PLC Financial Statement Overview

Summary

Dowlais Group PLC is facing financial challenges highlighted by declining revenues, operational losses, and negative free cash flow. While the balance sheet shows some stability, the overall financial health is weakened by high leverage and consistent net losses. The company needs to address operational inefficiencies and enhance cash flow management to improve its financial standing.

Income Statement

The company has experienced declining revenue with a decrease from 2023 to 2024. Gross profit margin has remained consistently low, and the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are weak, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio shows moderate leverage, but the increasing net debt is concerning. The company has a reasonable equity ratio, which suggests some financial stability. However, declining stockholders' equity over the years is a potential risk.

Cash Flow

Free cash flow has turned negative, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is poor due to negative net income, highlighting cash generation issues. The free cash flow to net income ratio reinforces concerns about cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.34B	4.86B	4.59B	4.12B	4.13B
Gross Profit	646.00M	757.00M	658.00M	581.00M	470.00M
EBITDA	345.00M	31.00M	386.00M	263.00M	342.00M
Net Income	-173.00M	-501.00M	-82.00M	-302.00M	-199.00M
Balance Sheet
Total Assets	5.71B	6.23B	9.80B	10.04B	10.43B
Cash, Cash Equivalents and Short-Term Investments	354.00M	313.00M	270.00M	275.00M	141.00M
Total Debt	1.44B	1.31B	2.33B	2.71B	2.77B
Total Liabilities	3.40B	3.67B	4.79B	5.21B	5.63B
Stockholders Equity	2.27B	2.53B	4.93B	4.80B	4.78B
Cash Flow
Free Cash Flow	-71.00M	12.00M	-12.00M	55.00M	205.00M
Operating Cash Flow	120.00M	307.00M	210.00M	223.00M	390.00M
Investing Cash Flow	-119.00M	-262.00M	-137.00M	-115.00M	-140.00M
Financing Cash Flow	17.00M	23.00M	-100.00M	26.00M	-364.00M

Dowlais Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DWL, the sentiment is Positive. The current price of 83.6 is above the 20-day moving average (MA) of 79.83, above the 50-day MA of 79.70, and above the 200-day MA of 68.92, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 92.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DWL.

Dowlais Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVSG	―	£911.53M	47.81	6.75%	0.63%	4.00%	-6.98%
XPS	―	£704.03M	23.23	16.35%	3.49%	16.66%	-44.06%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THG	―	£669.09M	―	-18.75%	―	-20.36%	44.33%
DWL	―	£1.09B	-12.95	-3.81%	5.02%	-8.09%	82.87%
AML	―	£637.34M	-2.16	-37.46%	―	-7.90%	18.13%
MOON	―	£687.18M	―	―	1.39%	2.62%	-129.82%

Dowlais Group PLC Corporate Events

Dowlais Group Reports Solid H1 2025 Performance Amid Market Volatility

Dowlais Group PLC reported a solid performance for the first half of 2025, despite a volatile market. The company achieved an adjusted operating profit increase of 5.3% to £154 million, driven by restructuring initiatives and performance improvements, despite a 1.6% decline in adjusted revenue. The automotive sector saw a slight decrease in revenue but an 11% rise in operating profit, while Powder Metallurgy faced a revenue decline due to lower volumes in Europe and North America. The company also announced a significant merger with American Axle & Manufacturing Holdings, Inc., which is expected to enhance global scale and technology capabilities, creating substantial long-term value for shareholders.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.